Fillable Form Fia-40n - Oregon Farm Income Averaging

Example: John Farmington owns a farm in Ontario, Oregon

John had a $3,000 net capital loss deduction on his 2009

but is a resident of Idaho. John files as a nonresident for

Schedule D, line 21, and a $7,000 loss on Schedule D, line

Oregon each year. John did not use farm income averaging

16, the carryover from 2008 to 2009. Because the NOL is for

for 2008, 2009, or 2010. For tax year 2011, John has elected

Oregon only, no adjustment is necessary on line 10a and no

farm income of $18,000 on line 2 of Form FIA-40N. His 2008

adjustment is made on line 10b since the capital loss deduc-

income after subtractions shown on line 38 of Form 40N

tion is not Oregon source. John enters -0- on lines 10a and

is $25,906 in the federal column and $6,150 in the Oregon

10b of the 2009 worksheet. John enters -0- on line 11a and the

column.

Oregon only NOL of $22,950 on line 11b of the worksheet.

John had a NOL for tax year 2009 of $22,950 for Oregon only,

In the federal column on line 12a, John enters a positive

which he elected to carryback five years. Of the $22,950 loss,

$10,850. For the Oregon column, John adds the $22,950 on

$9,000 was carried back to tax year 2008 and completely

line 11b and the negative $27,250 on line 9b of the worksheet

absorbed. John combines the $9,000 NOLD with his Oregon

and enters a negative $4,300 on line 12b. These figures rep-

income after subtractions of $6,150. The result is a negative

resent John’s recomputed federal and Oregon income after

$2,850 and is entered in the Oregon column on line 1(b) of

subtractions for tax year 2009. John enters both of these fig-

the 2008 taxable income worksheet. John enters $25,906 in

ures on Schedule Z, Computation A, for tax year 2009, line

the federal column on line 1(a) of the 2008 worksheet.

1, in the federal and Oregon columns.

When John filed his 2008 federal tax return, he had a $3,000

For tax year 2010, John’s income after subtractions is not

net capital loss deduction on Schedule D, line 21 (which was

negative in either the federal or Oregon columns. Therefore,

also entered on Form 1040, line 13), a $7,000 loss on Sched-

John can complete Schedule Z without using the worksheets.

ule D, line 16, and a $4,000 capital loss carryover to 2009.

Have questions? Need help?

The capital losses are not Oregon source. Since the NOL is

for Oregon only, no adjustment is necessary for the capital

General tax information ...................

loss deduction or for the capital loss carryover to 2009. John

Salem ................................................................. 503-378-4988

enters -0- in both columns on line 2 of the 2008 worksheet.

Toll-free from an Oregon prefix .................. 1-800-356-4222

John had no net operating losses for tax year 2008 for either

Asistencia en español:

federal or Oregon. Because the NOL from 2009 is completely

En Salem o fuera de Oregon .......................... 503-378-4988

absorbed in 2008, there is no carryover to tax years after 2008.

Gratis de prefijo de Oregon ......................... 1-800-356-4222

John enters -0- in both columns on line 3 of the worksheet.

John adds the amounts on lines 1, 2, and 3, and enters the

TTY (hearing or speech impaired; machine only):

result, a negative $2,850, on line 4b of the worksheet. John

Salem area or outside Oregon ....................... 503-945-8617

adds -0- to the $25,906 and enters the result, a positive

Toll-free from an Oregon prefix .................. 1-800-886-7204

$25,906, on line 4a of the worksheet. These figures represent

Americans with Disabilities Act (ADA): Call one of the help

John’s recomputed federal and Oregon income after subtrac-

numbers above for information in alternative formats.

tions for tax year 2008. John enters both of these figures on

Schedule Z, Computation A for tax year 2008, line 1, in the

federal and Oregon columns.

For tax year 2009, John’s income after subtractions is $10,850

for federal and a negative $27,250 for Oregon. John enters

$10,850 on line 9a and a negative $27,250 on line 9b of the

2009 worksheet.

150-101-161 (Rev. 12-11)

Form Fia-40n - Oregon Farm Income Averaging - 2011 Page 9

Related Articles

Related forms

Related Categories